Pemex reduces its debt by $5.17 billion

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Pemex

said it had lowered its debt by about USD $5 billion , and that would help strengthen its financial position .

Citigroup Global Markets, Goldman Sachs, HSBC Securities (USA), J.P. Morgan Securities, BofA Securities, Credit Agricole Securities

(USA) and Mizuho Securities USA were dealer managers on the transactions .

Pemex is saddled with over USD $104 billion of financial debt and its bonds are under threat from Moody ’s of losing their investment-grade rating. They have already been downgraded to “junk” by Fitch .

The company is also struggling to reverse years of declining oil output and fix entrenched mismanagement and corruption .

Furthermore, Pemex said it had paid USD $5.17 billion in a tender offer to prepay about a third of its bonds maturing between 2020-23, part of President López Obrador’ s latest effort to shore up the state oil firm.

The company announced the bond tender e arlier this month, using a USD $5 billion capital injection from the Mexican government.

In addition, Pemex said it had paid a total of USD $34.066 million in accrued and unpaid interest on the bonds .

Mexico gives Pemex an additional USD $5 billion

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